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tv   Fast Money  CNBC  August 22, 2016 5:00pm-6:01pm EDT

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it would be great to see them do well. kobe bryant launching a $100 million venture capitalist firm. dennis, mike, thank you so much for joining us. that does it for us. "fast money" is back and it begins right now. oh, yeah, we are back. it has been two weeks since "fast money" was on the air due to olympics coverage and we've missed you. to celebrate, we have a big show lined up for you. so let's get right to it. "fast money" starts right now. i'm melissa lee. we have your traders on the desk. tonight on fast, oil getting its worst day since august first. the perfect storm may be brewing. and plus a developing story we're following this it hour. senator chuck grassley on mylan epi pen cost increase sending that stock sliding. we're al over the story. and later on, tom lee says he's
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buying stock with high yield.l . and later on, tom lee says he's buying stock with high yield. tonight he will give us three names he's betting big on. but first, something surprising in the market since we were last on the air. since the start of the olympics on august 5, we've seen some very big moves in several retailers. so big in fact we're calling it a retail renaissance. take a look. nordstrom, macy's, foot locker, ralph lauren and kohl's seeing gains with more than 2%. is it time to take profits? pete, what do you say? stick with the move? >> the majority of the names were beaten down and we talk about the rotation in the marketplace and you look at what is going on in retail and i think what we saw through the earnings season has been these names didn't do as poorly and so they were able to step over the bar. and you still looked at names, we talk about valuation. valuations still remain low. in some cases you're getting a great yield. nordstrom has rack which continues to perform for them. macy's has their off brand.
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so everybody has something. it's just a matter of how well are you executing. because we all know how fickle consumers can be. but i think this quarter what surprised the street was they didn't do as badly as expected. >> and this hasn't happened in a vacuum. we did get a number of retail earnin earnings some better than expected. and there is a seasonality factor, perhaps. >> so last year you had the weather issue where you had abnormally warmer seasonal weather. so you had the discounters, t.j. maxx, ross stores. so a lot of these names had the best they're going to have? i don't think you will see it again. because what they did last year was they had too much inventory, so they somd it to tld it to t t discount discounters. names that did do well are sells, the ones that didn't, buy. >> rotation is a really about part of it.
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trading near 52 week highs, walmart, home depot, you know, those stocks have yet to break out. costco is another one. and they have been putting up good monthly sales numbers. the other ones put up decent results. but then you have big names like target and lowes that sold off a lot the. and when you think about that list, the market cap, it pales in comparison to some of the moves that we saw in some of the larger cap names. so i think you saw a rotation into things that had very low expectations that were beaten up a lot and i think really the next play for retail is playing the home depot, costco and walmart for breakout. if that's the trend, if that's where you want to be, then you have to go there. >> welcome back. >> great to be back. >> the bottom line here in the retail sector is the bar was extremely low. and if you look at macy's, 17% short squeeze. ralph lauren i'm long, but again, a name that is in
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transition. i think the long term prospects for this company are good. but for those names that are heavily shorted, it's an existential moment. in ralph lauren's case, they are trying to get ubiquitous. you have a management team thinking forward. xrt at 46, that is the top end of a range that i would not be chasing. if anything, it's run into the resistance of 46 multiple. >> you mentioned the ones trying to get more exclusivity. cors and coach had that problem for some time and they were talking about scaling back in the department store channels. interesting to see the department stores do well during this period when they are poo-pooing their business basically. >> i plooe dwcompletely agree. i think someone that stood out to me is star get. a target versus a walmart, they really aren't a compare sisocom.
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walmart 56% of it is coming through grocery. target doesn't have that same blend. it's only 20% of their revenue through grocery. that really i think is something that is causing target to have some issues. and because of that we're looking at a name that trades at a 13 multiple. they have great earnings. buying back stock. doing everything right. everything that they should be doing. and yet they're not able to perform with walmart because they're not the one stop shop that walmart now has created with grocery. >> so if they tweak grocery, their problem is solved? >> i don't know if it's solved, but the biggest problem they face is they don't have enough mix of grocery and they have to get it right. >> it's an electronics problem, as well. there is nobody knew to buy out there. >> i think what is going organization first of all there, is deflation in food so it's actually a bad thing. what walmart is doing is they are getting back to what they are always dominating on, price
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competitiveness. they have reinvested in their basics. meanwhile they will suffer. i think on margin a lot of these guys are looking at a very difficult second half of the year because in fact you have deflationary forces. for retailers, you want to see inflation. i want to -- >> there is back to school and holiday shopping. >> but there are too many -- there is too much competition chasing two few sales dollars. >> and to get more caught in the weeds, ulta is up 46%. the one thing they were hitting on was cosmetics. that is still a buy up 46%. >> macy's blue mercury, you like that place, right? that should be an interesting asset. i just want to mention target. you talked about not having stuff to buy. they specifically called out apple products. that was really interesting. and then when you think about can this move carry through after back to school, we know apple will be releasing new phones and when you think about
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it, there is a company expected do probably 30 billion in cellphone sales during the september/october period, you know. that could pull from a lot of demand. >> do you like target? because i bought it. >> i took a shot a couple months ago 70 bucks, and it rallied back 75, 76. and i'll make one other point. what happened while we were gone? also walmart paid $3.3 billion for you said walmart is killing everybody. but walmart has been getting killed by amazon. they need to improve in online sales. >> online business has grown upon himself fitself for the fi ever. reality is walmart is getting back to -- they lost price competitiveness. that's what walmart is all about. it's a massive place where people do it all. >> let's shift to energy now. perfect storm may be brewing in the oil market. dennis gartman warning investors
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not to bank on any near term rallies. and he's joining us. he is in virginia beach. good to see you. what is this perfect storm brewing? >> well, there are a lot of things that have gone on. first of all, let's remember several weeks ago at the bottom you had an outside reversal day in crude oil and i said i think you'll get a strong rally to take place $7, $8. it actually went $8, or $9 or $10. but you had the market rallying on news out of nigeria and angola that production would be curtailed. and a lot of people betting that it would decline materially because of the problems in the southeast region with the avengers who last night signed a peace treaty. we'll see if it holds. but when that news hit the day, crude oil fell precipitously. that news came out about 3:00 this morning and it chankded ge
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market dramatically you have production increases from iraq. you have production maintained high and likely to rise in iran. and you have the saudis obviously antagonistic toward the iranians. so here at $50, wti, $52 brent, with a $4 to $5 contango for the one year, suddenly fracking is one against profitable and a lot of drilled but uncompleted wells, ducks as they're called, are coming on line. so that which had been bullish suddenly turned somewhat bearish. i think you could trade crude oil down four, five easily. >> and you think the gains could be capped. so we'll try to have a ping-pong sort of trade here. >> well, that is my fear. i wish that we had seen crude oil go sideways at the bottom, quietly rally, and then you could have had something that was sustainable. but the fact that you rallied $10 brings a lot of new production or a lot of old production that had been closed
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online far too quigley. i'm afraid we might see this sort of activity where we traded to 50 trade back to 35, trade to 50, drive people crazy. i wish we'd have seen it quietly much more sustainedly rally instead of the manner in which we've done it p. >> got it. that is quite a range. thanks so much, dennis gartman. so with that said, and we did see a pull back this the energy equities. should we be concerned? >> no, you should be look at a place to pick this up lower. most of the oil industry isn't profitable at 50. there are a handful of guys that could actually do something at 50, but opec has a problem the 50. it's a self correcting mechanism. we won't go to 65 overnight, but we're not going to 35. >> that's the problem, i don't think opec has a problem at 50rks we have a problem at 50. but they will city produce.
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but i think more accurate thing is what dennis said, that trading range. we held the april low of 39ish. we've known about all this bearishness in the marketplace and crude still has not broken. >> i think the most interesting thing is the grinding when you talk about the s&p all the time, this incredibly tight range we're in. how about oil? the ovx, here we are bouncing off of the lows and just a couple percent above that and most of that coming today. so we're in this grind, whether the s&p right now and you look at the volatility index between 11 and 13 ever since july and you look at the ovx and where we trade now, seems to me oil this range we just continue to find these ranges. >> isn't oil 2r5trading at a 20 range? >> or is it really trading 45 to 50 and then finding these little areas. but within that area, i think ovx -- >> i don't trade that much in oil, but i look at the moves and i get worried about my oil stocks. >> i'm holding because i've even
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the xle, i've bought calls in there. there is also some service names involved. >> less dependent on the actual -- even though it is to a certain extent, but you have the dividend, you have a yield there. but if you look at a pxd up 48% year to date, those i think you sell. >> i think we have to talk about the dollar. the dollar sold off 3% in the last month and that really got the crude oil going. and if you think about it, when we have the fed meeting september 21, a 26% chance of a raise here, if the dollar were to start to rally again, i would expect crude to come in. but i'm with you, xle at 65. >> holding the 200 day moving average. ever since it broke above april, the's been the it's been there ever since. >> mylan is moving lower. >> and senator chuck grassley sending a letter asking for more information about the pricing of
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epi pen, that vitally important drug used in allergy emergencies. citing nbc news reporting from last week showing that the cost of epi pen has risen over 400% since mylan acquired the drug in 2007 and here we have a price xwr graph showing the price over the last 5 years. you can see over $600 now. so chuck grassley joining a chorus of other folks looking into the pricing of this asking in his letter that mylan explain the changes that they made since the acquisition that caused to increase the price and reflects the value that the product provides. this follows a tweet last week from bernie sanders also criticizing the pricing saying there is no reason which it costs mylan just a few dollars to make that the epi pen should cost families more than $600. so this weighing on shares and it's a story that has been around almost a year, back since
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mart martin skrelly oig started the headlines. >> and we should say that mylan essentially said prices changed over time to better reflect the important product features and the value the product provides. so they're saying that's why we see this 400% increase in the price. whatever the reasons are, it's getting scrutiny and the stock is moving. so what do we do? >> i don't know. we've seen a lot of scrutiny seems like actually we'll continue to hear scrutiny. it's politically expedient. makes sense except for the fact that we've also digested what they can do in the short term. if you look at the stocks under the most pressure, they have actually shruggeded it off. if anything, 285 to 290. i don't think this is a headline that will throw the entire sector into a tizzy. meanwhile i think the presidential race is more focused on other things than this about that. >> how do you feel about mylan? >> you talk about some of the
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names and i look at teva and the moves that they have done and it's been a monster. mylan always seems to be the second dae ary aspect. so i'd rather be in teva. >> do you think it will pick up in terms of a political issue? >> i think it is. but if you couple that with any type&a headline, i'm still in pfizer. but if you couple it with the m&a, i agree 295 should be support. but 300 has been formidable resistance. >> and we'll have much more on m&a later on. meantime up next, the social media could rally another 20% higher from here. we'll give you the name and tell you what is behind the bullish call. plus drugs and money. pfizer agreeing to buy mehdi vags sending the stock soaring. and later, one of the bulls on wall street unveils will his strategy to beat the market and something to do with the hunt
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for yields. tom lee gives us his three stock picks he's betting big on. and let's take a look at what our traders were up to the last two week. a little family action here. boating. >> nice. >> pete is working on his muscles. >> gun show. >> much more where that came from. stick around. ♪ [announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models.
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time for our call of the day. and it's on facebook. shares can climb more than 20% adding that with its price to earnings ratio dropping a bit and outlook strong, saying it's time to get into the stock and of course this after, what, a 44% increase in the share. so are you going to poo-poo this? >> no i'm not. here's the thing. i'm not a bull. i think what they are saying is that it's priced for a deceleration of sales growth. and therefore if you think that they will continue to increase earnings the way that they have and sales, even at 35% next year, it's trading at about 30 times or something. so they think it's reasonable. i don't think they're making a call for up 20%, they're saying
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the average price target on wall street is up 20% and therefore it could go there. i don't buy stocks because this key go s could go shomewhere. i need more of a reason. >> i don't think we learned anything new from that article other than the fact that i think the sentiment around the stock actually might be somewhere in the middle of the road. and an article like this sometimes gets people back to, hey, what am i missing here. i think their point was at 23, 24 times when general mills and kelloggs trading at the same multiple and yet these guys growing at 50, 60 times, they have actually increased. it's hard to argue right now. >> and they still have properties to monetize. >> and on a very micro level it it does appear that it is running out of a little momentum. but i agree with dan, it's hard to forecast out. >> are you skeptical? >> yeah, i am.
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but people -- look at facebook before the growth. they look for growth in the area. facebook is that growth flag. so, yes, there will be buyers, but to forecast out a number of years wherein instragram, and i know pete is all over it, but it's hard to forecast where the puck is going in the space.n in know pete is all over it, but it's hard to forecast where the puck is going in the space. ins know pete is all over it, but it's hard to forecast where the puck is going in the space. >> the growth continues to be very powerful, but the fact that they have so many levers that they could pull. when they start to monetize, if indeed they monetize, but when you look at the number of users and the growth in certain other areas where they made some of these acquisitions, it's pretty staggering. and if they can get monetization and the video segment, everybody talks about how valuable those ads are, i see this name and i very easily could see a 20% up side here. still ahead, while facebook may be rallies, apple is falling. we'll tell you whether or not
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any of the traders used this opportunity to buy. i'm melissa lee and you're watching "fast money." here's what else is coming up. >> you don't understand, i could have had class. i would have been a contender. >> we hear you, brando. and on the back of phafizer's $ billion deal to by medivation, we're giving you several other contenders. >> plus -- >> magic mirror on the wall, who thousand is t now is the fairest one of all? >> one says big tech is the fairest one of all and he's telling us why the rally in technology is only just the beginning. plus, the best names to bet on now. when "fast money" returns. how can good paying jobs disappear? it's what the national debt could do to our economy. if we don't solve our debt problem 19 trillion and growing money for programs like education will shrink.
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let's get to our move of the day. biotech soaring 2%. so what will be the next big deal in some this space in meg terrell has the details. >> the question might be according to investors what is not going to be the next big deal in the space. lots of speculation going on. so let's talk about a couple names. in-cyte is one of them working in cancer. they have both approved drugs and drugs in the pipeline making them similar to medivation and stock up almost 8% today. another one folks are talking about, biomari pharmaceutical. that one quoted specifically for
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sana it fee. and vertex work in cystic fibrosis. a couple names have been talked about including tesaro and clovis because of their similarities to medivation. both traded up as well. and we'll end on a breast cancer drug. you can see a continuing theme in cancer drugs and rare diseases. these are areas that pharmaceutical companies are looking to buy. >> and sanofi, who are potential buyers? >> i can't position think of on hasn't been named. you also hear names like astrazeneca continuing to work. bio gen is a potential target and buyer. so any of the big companies with cash are probably looking to buy right now. >> meg, thank you.
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pete najarian. >> meg and i talked about this day and i do look at bio agagen a possible acquisition. >> she shot that down. >> yeah, she sort of snickered at me. but that's okay. we always taul talk about tways pipelines. i look at what bio gen has in their pipeline and they have plenty of different drugs in in the later stages. but alzheimer's is something that everybody is focused on. and because of that, nobody has had the success that they're looking for yet. if they're in as we know that is the holy grail and if somebody is thinking the expectations for bio gen are good, this could be impressive. plus trades at a multiple that is very attractive. >> the move in pfizer wasn't so bad considering it was the acquirer. and big phrma, where would one go, they all have nice dividend yields also in style these days.
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>> i've only been this pfizer. pete has much more exposure to this area over the years. it's bone of my stone of my sta. but if any of these headlines speak to the fact that it's a binary situation, i think if you want to play the space and you want to be risky, you have to go ibb. you get all those top performers. down 14% year to date. as we talked about it, you get m&a, you could get a pop over that resistance. still ahead, movie stocks surging, but the box office is bombing. on so what gives? and tom lee still one of the biggest bulls on the street and bringing three high yielding stock picks along with him. you're here to buy a car.
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we're certainly back right where we belong after two week off the air. and during that period about of time, the s&p has gone, well, nowhere. almost completely flat even though stocks saw a bit of volatility, but we're right back where we started from. and today a bit of a mixed bag for the market. the dow and s&p moving to positive territory, nasdaq manage to go hold on to a small gain. here is what is coming up. tech sector up more than 10%. a top technician explains why there could be more room to run later. plus, we'll tell you why investors aren't giving up on hollywood after yet another summer blockbuster flop. a second report later this hour. but we start off with the markets. listen up because tom lee is back and this time he's coming with three high yielding picks to own right now. to tom, welcome back. why is yield still a very important part in terms of stock
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picking? why is that a driving factor? >> if i had to say it in a sentence, i think the real asset allocate tore today is an income funds. because there is a search for carry. interest rates are negative. income funds are getting a lot of money and they're trying to find reasonably priced stocks. >> so they're the biggest allocators so you think that is an automatic bid for some of these stocks. >> exactly. on the margin they're getting money every day, so you want to bite stocks that you think that they will buy. >> so let's go through the three picks. >> okay. >> because they're interesting ones. target had a big pull back. >> yeah. target, it's interesting because this is a situation where i think you have rich reward. it's a single-a rated credit. trading at a very low pe multiple and there are core assets that can recover. they do have sort of the core strengths. >> a re jure we just waiting fo
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the to fix the grocery business? >> yes. and it does remind me of amazon last september. target has a really high dividend yield well above its costed debt. walmart last year was in the same situation and i think what it tells us in risk/reward, just turns positive. >> and why cisco? >> i think cisco in some ways might be the most interesting of the three because it's a 12 pe stock. cash return plus dividend yield over 6%, cost of debt is 2.5. and as you pointed out at the start of this segment, tech has done really well. tech does well when the market begins to sense investment spending picking up. so i think in a way if we're talking about fiscal stimulus coming, you really want to be long tech. >> there are guys out there that says cisco should be traded ten times. i'm not one. i'm long the stock. but what is the argument the multiple is cheap to its
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relative history? credit suisse says it should be trading at ten times. >> i think what people have to think about is that if cisco is a ten p aboe stock, pay outratio should go to 100% and then the company could probably buy itself sbhentirely within six years. if you still have a $30 stock, you have a duouble. >> and chuck robbins, new qceo, one year on, i would expect him to put that $65 billion to work at some point. i mean, a transformative acquisition. and that is the risk to that one. i like your call. you made an awesome call in january on wall hart. it was probably about 10%, 15% lower here and i think that is the one target we were just talking about it earlier, when you think about their ability to fix some stock and you think about that dividend and the u.s. domestic exposure, that feels
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like the owoone to me. >> do you like any of these three? >> target, it's an underperformer. i like the cisco steady eddie approach to it. but you touched on it, does the market have to sit here and perform for these stocks to do well? if you see the market selloff, a cisco in particular, if i see that spend come off the table, i think this one trades down, as well. doesn't matter what the dividend is. >> and you were bearish coming into august. and now that we haven't had that, have we missed that opportunity? >> august still worries me. we're almost through it. so i'll feel a lot better once we're through august. yeah, with regard to the market, i think if the market sells up because of fed expectations moving up, you really do want to own yield plays actually. surprisingly they do quite well especially the ones that we have been talking about because the
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debt probably will outperform which means you want to own the equity. >> tom, we'll leave it there. thank you. pete, use ely lilly. >> real quick, cisco is in all the right areas because of security. so you look at the fundamental story of what this company really is and the direction they're pushing, robbins is early in his tenure and i've compared it time and time again, i look at this name the way i saw hike crkr microsoft. which is why i think the stock is a $35 to 37 pd sto$37 stock next 12 months. lilly, i'm still in it. merck i just got out of this past weekend, but i might jump back in. a buy right took me out of position. >> and now the buzz kill, apple seeing its worth day since the beginning of august falling nearly 1%. this on the same day that ceo tim cook celebrates five years at the helm.
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and it is up some 100%. although it trails the nasdaq. dan, what do you think of apple? >> obviously this was a great example of a quarter the one reporting late july that was not as bad as expected. and the fact that the stock actually had that gap up to about 103 and then kept on going tells you that people were offsides on this one. i would not expect this thing to fill up the gap towards 125. i just don't think that they will put up the quarters. we know iphone 7 will only be selling for a few week. so i think they might have fulled forward in some investors mind who are underweight and now may see the results. >> so is there an air pocket for this quarter? >> i think it's also because the yield, because of the buybacks and everything like that. i think the fact of the matter is i think the stock probably about put a floor in back towards 90. >> i think that it will make a series of lower highs since back to april of 2015.
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for all the reasons that dan is talking about with the chiphone it's running out of momentum. the fact that it hasn't made a higher high on a recent basis is troublesome for me. >> i'm not long right now. i think ultimately the story here is one where we're a quarter away from anything that will be resembling\goaccept goo resembling\good news. >> we do have a programming note here. we will be joined by john sculley in an exclusive interview live onset this wednesday. the actual anniversary of steve jobs retirement. so tune in for that. still ahead, one top technician thinks there is more room to run. he explains why after the break. plus as we head to break, here are more pictures of the traders enjoying their time off during the olympics over the last two weeks. >> the nathans. p my goodness, pete. >> that is my cousin. >> a costume show. >> that's my life.
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i'm in vests and as a vested investor in vests, i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at and get up to six hundred dollars. carter worth is also back from vacation looking dapper as
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always. and carter is saying now is the time to stick with big tech. so why? because we've seen quite a run. >> we have to put overweight or underweight on each sector and try to revise it as it needs revision or stick with it and this is one we stuck with all year. we know obviously tech up 8.5% versus market 6.5%, but let's look at a few things here together. just a few facts and figures to sort of get everybody on the same page. the sector itself of course its weight is almost 21%, the biggest. we know there are 68 stocks in total and market cap is $3.8 trillion. that is a lot of money obviously. and the top ten stocks are $3.2 trillion. so 67% of the weight of the entire sector in ten big names. the big marquee names that you know. now, since the beginning of 2009 to present, you've got this kind of performance versus an s&p up
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140, 145. so you have pretty consistent outperformance, but not so steep i think as to suggest that it will end. so over the last three, four years, two channel chart, this is relative performance. and it all factors, momentum, relative strength, very, very important in terms of hit rate. and this line is rising, and are you outperforming the market. so you have an absolute winner, but you have a relative winner. and then optically on the longer term chart, we know this is an epic sort of thing and that is our dot com. but this was five years and it's very steep. this is now eight and it's been very orderly. it's bounced off the line five times to the penny. and to my eye, this just continues. now, a bit of fundamentals for those who care. take a look at this chart. this is the pe. we had the peak when the dot com basically 75 times earnings. right now you have a multiple of 21. that is the market multiple. so you have a market multiple,
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so let me show to you this way, this is your relative pe. your pe of 21 and here is your relative pe. so not only is it basically at a market multiple, you have growth rates that are better and it's a lower beta sector at this point because of the large gap stocks with a lot of cash. so another piece, dividend yields. 1.6%. highest going back in about 20 years. what is that relative to the s&p? 2 abo 2.1. so the relative dividend yield is at a near record, too, at a 0.75. we like this and we think you stick with it and it's not random that of the five biggest stocks in terms of who holds cash, all of them are tech. apple, cisco, google, microsoft, oracle. $545 billion. >> wow. so carter, within technology, are there sub sectors or specific stocks that look the best on those relative metrics compared to the s&p? >> in aggregate, yeah,
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semiconductor equipment has been leading this by a wide margin. >> all right. carter, thank you. carter braxton worth back from vacation like all of us. >> and we were talking about semis just today because there is a brewing deal happening and that has been the force that has driven this sector. >> that's why that sector looks so strong. and i'll just tell you, if you want to buy into his call, you will buy into the fact that we just talked about cisco will make a big acquisition, microsoft just paid a huge premium for linked in og-linggl. so i would expect oracle, cisco deal, maybe apple finally does a big deal. >> what is interesting, and i would think this would be a key point for you, every one of these companies is at the top of a range and arguably at resistance. and you can make a very important argument as we go into september with a lot of people nervous, there is a lot of money
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complacent in big cap tech and they're complacent because of everything carter said which is dead-on. intel, microsoft, google, they're all struggling at key levels. >> and you like a couple of those names. >> i think texas instruments is the lost one that doesn't get tucked about enough. nxpi. you name it. and specifically, as much as people want to bash on apple,au. nxpi. you name it. and specifically, as much as people want to bash on apple,lu. nxpi. you name it. and specifically, as much as people want to bash on apple,ck. nxpi. you name it. and specifically, as much as people want to bash on apple,ke. nxpi. you name it. and specifically, as much as people want to bash on apple, take a look at sirius logic. directly connected to apple. and these chip stocks are moving for the fundamental reasons and they're inexpensive. >> micron up 14% abou, you have have a stomach for that. but nvidia, i've been positive and there is no end in sight and
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that is never the case. it's up 89% and people say where do you think it's going. they're everywhere you want to be. they're a poster child for everything that is good about it. up 90%. i know you have to hold your nose to buy it. >> by the time i pull the trigger, it will be a sell. >> sure fire winner. still ahead, another summbox of bust. and one trader is going all in on a call. we have the details next. if ♪
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[announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models. we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.
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. welcome back. it's been flop after flop for summer movie goers, so how are movie theater stocks still a hit? julia boorstin is here with more. >> this weekend's ben hur was just the latest box office bomb and lagging summer box office returns should hurt theater chains from tickets as well as concessions. but with the exception of imax, all theater stocks are youts performing the market so far this year. amc up 23% as it awaits appalachian approval of its acquisition. regal is up 14% and cinemark is up 13%. but it's not just m&a lions ga another name that could play in this spaceaeen beleaguereded, q1 numbers were intern expebetter than expected. the one thing that despite all that is going on in terms of the structural issues for the sector, whether skinny bundle, you name it, they have kept aco and that's what you want. black rock upgrading
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equities to overweight. and dan saw bullish options activity in the pits today. >> yeah, so eem, the etf that tracks the emerging market msi index here. and it was actually a bullish roll in calls in september expiration. just out a few week here. so one of the reasons why we like to highlight some of this stuff is because maybe here is a situation where one trader had an out of the money call position and he's rolling it down a little bit to get nearer the money protection. so call activity 1.25 times that of puts today and the roll that i'm talking broke when the as to being was kicking about $37, there was a sell to close of 55 thoufr ,000 of the september 39 calls and they bought 55,000 of the september 38 calls.55,000 of ths and they bought 55,000 of the september 38 calls. paying 28 cents to open. breaking even. but here is the most important thin. they have about a 30% chance of being in the money september expiration.g. they have about a 30% chance of
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being in the money september expiration. so a higher probability bet to have exposure. >> a tremendous run, but a lot of inflows. em has gone from under weight and i still think it's an enor mus trade here. >> and "options action" is back on friday, full show. up next, final trade and also what do the traders do over the past 2 weeks? more on that straight ahead. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim.
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plenty of action to key in, but one event that has got more impact on your money than any other. i'll let you know what it is and how to prepare your portfolio for it. "mad money" is next. welcome back to "fast money." we've been showing -- you know, we haven't shown what tim has done over the past two weeks. wait, wait, no, we have some pictures. let's take a look at what you were doing. oh, wow, looks like another hobby tim has picked up. olympic swimming. here he is in rio breaking records left and right. wow, butterfly, that stroke is amazing. >> that's what they say. >> final trade. pete. >> real quick being i', i'll ju
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pfizer. i think the stock is going higher. great pipeline. >> i think it's been a nice run by retail, but fade at 46. >> jcpenney look for a lower entry point and get back in. >> target. >> we're back and thanks for watching. see you back here tomorrow. my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now! hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i just want to make you some money. my job not just to entertain you but to educate and teach, so call me at 1-800-743-cnbc or tweet me @jimcramer. holy cow, where h


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